“Like slavery and apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the action of human beings.” – Nelson Mandela.
The purpose of The Sovereign Economy is to provide a safe haven for nationalised core strategic services and industries, protected by law, from open market fluctuations, predatory banking and accounting practices, corporate and private tax avoidance and fraud.
There will be no profit motive in The Sovereign Economy. The prime motive will be to enhance quality and efficiency.
The purpose of The Sovereign Economy is to provide:
Stabilisation and confidence.
An engine for economic growth.
Quality, efficiency and innovation.
Fair and equitable tax revenue.
A fair and dignified existence for all the people working within it.
If the companies within The Sovereign Economy are freed from the constraints of stock market perception and speculation, there will be no need to take action to address those issues. For example, stock buybacks, paying dividends to shareholders, stock price fluctuations, bonuses etc., will free up funds and management to actually concentrate on running the business.
Also, nationalised industries as we have seen are vulnerable to political economic ideology. If any future government decided sell a company within The Sovereign Economy, that government would first of all have to persuade the people that losing their sovereignty over that industry will be beneficial. The argument would have to be pretty persuasive for people to lose sovereignty and ownership of anything let alone a multi- million or billion pounds capitalised business. (Witness the Brexit debate).
Apart from being separate and distinct from the open market The Sovereign Economy will also provide some perception of being separate from government. It runs itself. Obviously there must be some interaction as the government are the agency that the people have appointed to oversee the operation of it. The Sovereign Economy should be established as a new economic sector in itself, with it’s own measurements of performance, efficiency and reporting, to the people.
No more cooking the books to hide profit. No more siphoning crucial tax revenue off into offshore tax havens. No more greed is good bonus culture. No more temptations to place bets with peoples livelihoods for a big payoff, or to cover bad bets. No more corporate looting of pension funds. All this lost revenue will remain within The Sovereign Economy and belong to the all of the people, not the few.
So what will happen to all this recovered revenue? The Sovereign Economy will provide an engine for growth that has extraordinary potential. Revenues generated by The Sovereign Economy will not only provide significant tax returns but also significant investment back to the nation for services, infrastructure, innovation. A dividend in kind paid back to the people of the nation.
There has been over the last 40 or so years, a colossal transfer of wealth from ordinary people to the few. The Sovereign Economy will not only halt this process but reverse it.